The price of gold climbed as much as 1,963 today, registering a new high. Still, the price action signaled exhausted buyers in the short term, so temporary retreats or sideways movements are natural. It's trading at 1,960 at the time of writing.
Fundamentally, XAU/USD stays higher as the US reported mixed data yesterday. The PPI rose by 0.1% less versus the 0.2% growth expected, while Core PPI reported a 0.1% growth versus the 0.2% growth forecasted. Furthermore, the Unemployment Claims came in at 237K versus 251K estimates.
Today, the US Prelim UoM Consumer Sentiment represents a high-impact event and is expected at 65.5 points versus 64.4 points in the previous reporting period. Better-than-expected data could force XAU/USD to drop.
XAU/USD Accumulation!
As you can see on the H1 chart, XAU/USD extended its growth after retesting the 1,935 - 1,931 broken resistance area. Now, it has stabilized above the weekly R2 (1,953) and is fighting hard to reach the upper median line (uml).
Technically, the 1,967 former high represents an upside target and resistance. False breakouts through this resistance may announce a potential sell-off. Dropping and closing under the R2 (1,953) activates a larger drop towards the median line (ml).
XAU/USD Forecast!
A valid breakout above 1,967 and through the upper median line (uml) activates further growth. This is seen as a new buying opportunity.
